We establish that in the Prisoners’ Dilemma, the model of Daley and Sadowski (2015) is logically distinct from three models that employ well-known forms of otherregarding preferences: altruism (Ledyard, 1995; Levine, 1998), inequity aversion (Fehr and Schmidt, 1999), and reciprocity (Rabin, 1993).

Previous studies have argued that entrepreneurs earn less and bear more risk than salaried workers with otherwise similar characteristics. In a simple model of entrepreneurship, I show that estimates of mean and variance of returns to entrepreneurship used by these previous studies are biased, as they fail to account for the option value of experimenting with new ideas. Using longitudinal data,...

We establish that in the Prisoners’ Dilemma, the model of Daley and Sadowski (2014) is logically distinct from three models that employ well-known forms of otherregarding preferences: altruism (Ledyard, 1995; Levine, 1998), inequity aversion (Fehr and Schmidt, 1999), and reciprocity (Rabin, 1993).